HICL Infrastructure (HICL) and The Renewables Infrastructure Group (TRIG) have announced plans to merge to create the UK’s largest listed infrastructure company with net assets of over £5.3bn.
The move by £2.2bn HICL and £1.7bn TRIG, both managed by InfraRed Capital Partners, comes they struggle to rerate shares stuck on wide discounts of 24% and 34% respectively.
Assuming full take-up of a £250m partial cash option, HICL shareholders are expected to hold around 56% of the enlarged company TRIG shareholders around 44%.
Sun Life of Canada, the insurer that owns InfraRed, will buy a £100m stake.